1. Upon notification from the office of jeopardized fund interests under section 26.1-21-02, the state auditor may investigate the relevant state agency or political subdivision and may provide a report to the office regarding any findings.
2. The state auditor may evaluate the blanket bond coverage when conducting an audit of a state agency or political subdivision. The state auditor may recommend changes in the amount of coverage in the audit report.
3. Costs incurred by the state auditor under subsection 1 must be paid from the fund.
4. The state auditor may contract for an investigation under subsection 1.